Concept in Definition ABC

In terms economic, a active will be the total amount of a person's assets physical or legal. While, A fixed asset will be one that will not change during the business cycle. exploitation of a company, popularly known as a fiscal year; a clear example of fixed assets that allows to fully understand this concept as abstract is he Department or apartment where a company carries out its commercial activities, it is called fixed because it is It is a credit that will remain fixed during the commercial process carried out by the company in question.

On the contrary, the fixed asset is the current assets, what will that be liquid asset at the closing date of the fiscal year, or failing that, which is capable of being converted into money at the end of the fiscal year in question.

The fixed assets are characterized by being little liquid, in opposed with the aforementioned, because they imply the need for a long time to be able to convert them into money. The normal and

ideal it is that they remain in the company for a long time or at least until they are no longer needed.

Although fixed assets are durable in time, they are not eternal either, therefore, it is that the accounting requires its replacement once its normal or useful life has elapsed, because otherwise, as a result of its use and wear something may become obsolete and then in this way the initial value that that asset represented would be greatly lost permanent.

Fixed Assets Topics